PVR INOX Limited

Communication Services — Entertainment · NSE

₹1,403.00+₹21.10 (+1.53%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of PVR INOX Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

PVR INOX Limited, a theatrical exhibition company, engages in the exhibition, distribution, and production of movies in India and Sri Lanka.

IndustryEntertainment

SectorCommunication Services

Employees4,331

Annual revenue₹6,604 Cr

How does it make money?

Turns over ₹6,604 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹34 left at the operating level before interest, tax and depreciation. Each of its 4,331 employees supports ₹1.52 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin34.0%

Net margin5.1%

Revenue / employee₹1.52 Cr

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

BHARTI AIRTEL LIMITEDP/E 39.8x · ROE 20.2%

VODAFONE IDEA LIMITEDP/E 3.6x · ROE —

What is its competitive advantage?Little sign of one

Returns on capital of 7.1% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE7.1%

ROE4.5%

Peer median ROE20.2%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 10.5% and earnings to grow about 36.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.5%

Est. earnings growth+36.3%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +77% while net margin moved -156% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+77%

Margin effect-156%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 50.6x is demanding — it needs sustained high growth to justify

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

38/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

50.6x

Sector Median

21.7x

median of 2 sector peers

⚠️Against its sector it trades 133% above the peer median of 21.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

21.7x median of 2 peers · +133%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

50.6x

P/B

1.87x

EV/EBITDA

8.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 28.7% to 34.0% over 3 years.
Debt is being paid down
Total debt is down 16% over 3 years.
Cash generation is improving
Free cash flow is up 734% over 3 years.
Return on equity is rising
ROE has improved from -4.6% to 4.5%.
Return on capital is rising
ROCE has improved from 2.3% to 7.1%.

🔴 What Needs Attention1

Short-term liquidity is tight
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.47 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 28.7% to 34.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 133% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 20.9% CAGR
Latest reported year was 10.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 32%✓ 34.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹1,902 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹13,487 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

50.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.87x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹27.71

Profitable

Profitable on a per-share basis

ROE

4.5%

Weak

Weak capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

0.92x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

219.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1,902 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,403

P/E (Forward)

23.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.2%

Average

Average margins

Net Margin

6.5%

Average

Average bottom-line conversion

Current Ratio

0.47

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

1307.1 / 1247.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹3,737 Cr	₹6,089 Cr	₹5,654 Cr	₹6,604 Cr	+20.9%
EBITDA	₹1,073 Cr	₹1,938 Cr	₹1,690 Cr	₹2,247 Cr	+28.0%
EBITDA Margin	28.7%	31.8%	29.9%	34.0%	—
PAT (Net Profit)	-₹335 Cr	-₹32 Cr	-₹280 Cr	₹334 Cr	—
EPS	₹-51.6	₹-3.26	₹-28.48	₹33.87	—
ROE	-4.6%	-0.4%	-4.0%	4.5%	—
ROCE	2.3%	5.0%	3.1%	7.1%	—
Total Debt	₹8,052 Cr	₹8,304 Cr	₹7,775 Cr	₹6,779 Cr	-5.6%
Free Cash Flow	₹228 Cr	₹1,345 Cr	₹1,637 Cr	₹1,902 Cr	+102.8%

🟢 Revenue has grown at 20.9% a year over 3 years.

🟢 EBITDA has grown at 28.0% a year over 3 years.

🟢 EBITDA Margin has risen from 28.7% to 34.0% over 3 years (+5.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹335 Cr to ₹334 Cr.

🟢 EPS has turned positive, from ₹-51.6 to ₹33.87.

🟢 ROE has risen from -4.6% to 4.5% over 3 years (+9.1 pts).

🟢 ROCE has risen from 2.3% to 7.1% over 3 years (+4.8 pts).

🟢 Total Debt has shrunk at 5.6% a year over 3 years.

🟢 Free Cash Flow has grown at 102.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹15,612 Cr

Total Liabilities

₹8,234 Cr

Total Debt

₹6,779 Cr

Cash & Equivalents

₹588 Cr

Operating Cash Flow

₹2,160 Cr

Capex

-₹259 Cr

Shareholding (proxy)

Institutional Holding

41.7%

Insider Holding

28.9%

Corporate Actions

Next Earnings

22 Oct 2026

Ex-Dividend Date

05 Mar 2020

Analyst Consensus

Recommendations

16 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹1,494.31

+6.5% vs CMP

Target Range

₹1,189 – ₹2,135

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

3 positive1 mixed2 general

PVR Inox opens ₹300 crore buyback for 20.6 lakh shares at ₹1,450

scanx.trade, 18 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

PVR Inox shares rise 9% as CLSA retains 'Outperform' rating, sees up to 57% upside

Moneycontrol.com, 07 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

PVR Inox board approves share buyback worth up to ₹300 crore; all you need to know

Upstox, 31 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

PVR Inox rallies 23% in month, nears 52-week high; what's driving stock?

Business Standard, 18 Aug

PVR Inox urges shareholders to update email IDs for AGM notice

scanx.trade, 18 Oct

PVR Inox Share Price Rises 6.13% Today | Valuation View

Univest, 07 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.5/20

🟡Financial HealthAdequate11.2/20

🟢GrowthStrong13/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding5.7/15

🟡RiskModerate4.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year20.9% CAGR
✓EBITDA margin holds above 32%34.0%
✗Debt / EBITDA falls below 3x3.0x
✗Interest cover stays above 3x1.3x
✓Free cash flow remains positive₹1,902 Cr